Ford is preparing a £500 million capital injection for the unit's struggling Jaguar division, according to the London Sunday Times, citing a senior Jaguar source.
Earlier this month, Ford said it expected Jaguar, which has struggled to keep pace with larger rivals in the premium car sector, to report flat sales and a loss this year.
Jaguar has said it plans to end assembly operations at a plant in Britain and cut 1,150 workers, or 15 per cent, of the money-losing division's workforce.
Ford's Premier Automotive Group (PAG), which includes Volvo, Aston Martin, Land Rover as well as Jaguar, reported a 2004 pre-tax loss of £395 million, a decline from a pre-tax profit of $171 million in 2003.
The decline primarily reflected unfavourable currency exchange and lower volumes at Jaguar.
Ford has projected that PAG will have a 2005 pre-tax profit of $300 million to $600 million.